Knowles Corporation (NYSE: KN) and RadiSys Corporation (NASDAQ:RSYS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Earnings and Valuation
This table compares Knowles Corporation and RadiSys Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knowles Corporation||$867.60 million||1.61||$141.10 million||($0.23)||-67.95|
|RadiSys Corporation||$168.66 million||0.31||-$8.87 million||($0.63)||-2.14|
Knowles Corporation has higher revenue and earnings than RadiSys Corporation. Knowles Corporation is trading at a lower price-to-earnings ratio than RadiSys Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Knowles Corporation and RadiSys Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
58.7% of RadiSys Corporation shares are held by institutional investors. 2.2% of Knowles Corporation shares are held by insiders. Comparatively, 6.1% of RadiSys Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for Knowles Corporation and RadiSys Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knowles Corporation presently has a consensus price target of $19.33, suggesting a potential upside of 23.69%. RadiSys Corporation has a consensus price target of $3.60, suggesting a potential upside of 166.67%. Given RadiSys Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe RadiSys Corporation is more favorable than Knowles Corporation.
Volatility and Risk
Knowles Corporation has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, RadiSys Corporation has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.
Knowles Corporation beats RadiSys Corporation on 7 of the 13 factors compared between the two stocks.
About Knowles Corporation
Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
About RadiSys Corporation
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
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